Example Answers for Assessment of Hewlett Packard

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Hewlett Packard and other related firms are controlled by well-established business legislations so that it will fairly promote the competition in the industry. The country has decentralized decision-making process among businesses. Hewlett Packard has the freedom to formulate its strategies and reach to the available resources.


The U.S economy is mainly ascribed to its rich and different business sectors to run the economy. Manufacturing industry is one of the most important sectors of U.S. Industrial machinery sector in which Hewlett Packard undertook the industry of computer and other equipment produced.


The country is high diversified in terms of religion, nationality, and races. Moreover the existence of minority which creates multiplicity in the country that is also accountable to open trade and entry of immigrant workers. The increase in the immigrant workers also advices the growing working sector that increase the need for technology, and computers.

Hewlett Packard¿½s Micro Environment: Porter¿½s Five Forces

Most of the companies analyzed its competitive structure of an industry with the help of using Porter¿½s five forces, which tries to determine the point of attraction in an industry by acknowledging the five forces within the market, and analysis which strategy company should adopt.


Rivalry plays an important part in porter models, which is suppose to be the strong variable. Considering the Hewlett Packard¿½s environment the level of opposition can be indicate as high, which illustrates the state and number of competitors for each other¿½s economics return. This happened due to the many competitive firms of the same size. Moreover, competition intensity increases because of the companies¿½ product and services competency lack-ness. The other rivals of Hewlett Packard were showing their aggressiveness, moving strategically in the market in order to make more sales, and maximize their profits. For example, when the trend of internet retailed has started, IBM, Compaq, and Dell are also one of the big companies implementing the similar business strategies. Apart from it, these firms are also aim to target the same market segment, and creating high competition among these companies.


The entrant issue for Hewlett Packard is very less in chances due to the many reasons. They have substantial capital to operation their business, it is not necessary that capital can enhance your business but also the factors relating to improvement in technology which incur good capital also consider to put up your business development as well as the market. Hewlett Packard started its business in 1939 and they dissipated its operation before it became a multi billionaire company. Apart from it, that time those barriers were still in the process that other firm hardly enter in the market f the same field due to the customer loyalty and brand equity factors.


The buyer influence is fair over Hewlett Packard. Since the demand of the product is high and the buyer, attention towards the product is low due to the low influence of buyer. These factors propose that the firm has the strong influence over controlling the prices as well as the production amount it gives to the marketplace. Moreover, the products and services of other competitors offer to customers are undifferentiated so that makes a buyer influence neither high nor low for Hewlett Packard customers.


As we discussed above the influence of the buyer is fair, the influence of the suppliers with the firm is also fair. The supplier¿½s attention on electronic parts and components is small. In order to improve and have reliability over customers the Hewlett Packard deals with many suppliers for its product. The suppliers are also willing to work with the big companies, and make good relations.


Many other companies are producing similar type of products but when the issue of reliability is become a crucial part of the customer¿½s psychic as the Hp printers are very reasonable, and prefer by many customers. The rivalry are also targeting the same , the consumers have many products options to buy from , and making the level of substitute far above the ground for Hewlett Packard.

Question # 2

BCG matrix is the assortment to develop the planning model which is based on scrutinizing that the company¿½s business unit. BCG is classified into four divisions placed on the unification of market share and its market growth which is related to its largest rivals, therefore the word ¿½growth-share¿½. The BCG matrix accommodate a framework which allocate its resources amount various business units and able to recognize many business units at a first glance.


Hewlett Packard BCG matrix the product ¿½pocket computer¿½ is still a question mark it is growing like a fire in the market because the targeted minority wants to have this phone, but on the other hand it is not capturing the market share. They need to make strategies to execute this product in the market as they did before and attract consumers to it. It¿½s a dilemma for them because they should look at the plan and reposition the product.


When Hewlett Packard acquired Compaq and they use Compaq technology with the name of iPaq brand which had old mobile operating system, and faced problems related to the hardware which comes under dog.


Hewlett Packard¿½s servers, PC, and computer repair that is the main or you can say the most profitable area.


Hewlett Packard Printers supplies, ink cartages, and photo paper are the main core business for the company for which it is very famous.

Hewlett Packard Financial performance 2011:

In the first quarter GAAP reduced earning per share by 26 percent with non-GAAP impoverished earning per share by 27 percent, and 28 percent cash flow from its operation.

In the first quarter the gross margin up 1.5 percent point¿½s year over year to 24.4 percent.

The consistent strength in commercial hard-wares, networking and storage, with enterprise servers¿½ revenue up 22 percent year over year with the increase in commercial PC clients and printers of 11 percent and 13 percent correspondingly.

Performance Business Area:

The first quarter the Hewlett Packard performance in all the areas to support its growth, but from the Russia, China, Brazil, and India the performance is dramatically increasing. In the first quarter Hewlett Packard¿½s Americas income grew from 6 percent to 14.4 billion U.S dollars, from Europe, the Africa, and the Middle East increased from 7 percent to 121 billion dollars of business. Asia pacific region generated 58 billion U.S dollars.

Hewlett Packard accustomed their income increased 5 percent in Americas. In Middle East, and Europe accustomed income generated 4 percent. In Asia pacific region generated 2 percent.

Business Unit Performance:

Hewlett Packard personal systems group incomes were decreased by 1 percent and its operating margin was 6.4 percent.

In the first quarter Hewlett Packard printing sector and image increased by 7 percent and its operating margin was 17 percent.

Hewlett Packard revenue related to its service fell by 2 percent, 16 percent operating margin, and its operating margin increased by 30 basis points, the raise was primitively due to Hewlett Packard¿½s novice service delivery to reform its measurement.

First quarter of Hewlett Packard enterprises storage, servers, and network services increased by 22 percent, and its operating margin was 14.7.

In the first quarter Hewlett Packard¿½s software income increased by 5 percent , and its operating margin was 17.6 percent.

Hewlett Packard financial services increased by 15 percent, and operating margin was 9.6 percent.

Expectations from the performance of Hewlett Packard:

Hewlett Packard is expected to be increased in the second quarter 2011 and will generate revenues which will increase from 31.4 to 31.6 billion U.S dollars. Considered with respect to U.S GAAP reduction in profit per share will increased from 0.99 to 1.01 U.S dollars, and if it will not accounted with respect to GAAP the per share measures reduced profit that will increase from 1.19 to 1.21 U.S dollars. Hewlett Packard expecting the raise in revenues in full year fiscal 2011 from 130 to 131.5 U.S dollars

Value framework Analysis:

Hewlett Packard acquired Palm, and then Hp combined the technology. This was not only the acquisition of the two companies but also the merger of their technologies. After acquiring the Hewlett Packard start using Web OS in their PC¿½s, laptops, tablets, and smart phones so that will add value to the Hewlett Packard technology and its customers as well. Hewlett Packard didn¿½t have this technology before acquiring the Palm, this technology used to be owned by Palm. Those who uses particular technology when they get two thing together they will become your more reliable and frequent customers and gain value from it. When the chain of value increases ultimately the increase take place in everything e.g.; in technology, customers, and so on.


Hewlett Packard: SWOT


? Hewlett Packard is the well known having well- established brand equity in the computer and printer industry. They have gained strong market position and they gave gained reliability of their customers, and maximizing its profit.

? They have the biggest share in printer and computer market compared with its rivals.

? Rapidly increase in profit due to the reasonable price and customer loyalty.

? A sufficient resource to manage their workforce and dissemination of task is efficient.

? Overcome the adversities in the challenging market, and making effective strategies and implement them at the right time and place.


Hewlett Packard also faced the time when they were unable to handle its constant growth in the market. They had insufficient information of valuable customers due to the volume. They should hire a team and have to arrange market details I order to construct a strategic plan


As the concept of internet retailing dramatically increasing day by day they can shift towards the distribution e.g.: internet retailing, so that the customers can access from their home and the word spread like a fire.

The use of printers and computer at home and offices is very frequent now a day the owners prefer these gadgets are more in demand for many years.

The company research and development is very efficient they can acquire related need of customer and then develop product on the bases of current customer needs and preferences. This will help Hewlett Packard to move forward and develop customer satisfaction and awareness.


There are many competitors of Hewlett Packard in the market and they are the major companies like IBM, Compaq, and Dell are targeting the same market an developing the similar products. The Epson and Canon are also the strongest competitors of Hewlett Packard in the printer industry.

Hewlett Packard implemented effective strategies when they were acquiring Palm. Hewlett Packard is one of the biggest take over of 2000¿½s.The issue with the Hewlett Packard when acquiring Palm was that the software of palm OS weren¿½t that easily available in the market where as Apple and other smart phones software is available in the market. As Hewlett Packard has far more better strategic plan in terms of technological development. Their marketing strategies also helped them in executing the plan when they ere acquiring Palm. Hewlett Packard has a good name, customer loyalty, and brilliant workforce to compete in the market.

Question # 4

Ansoff product and market matrix is a mean which helps businesses to decide its product and market growth strategies. It suggested that the business undertakes to increase depend on whether its market is new or existing product in existing markets. Ansoff matrix is one of the most important frameworks in order to decide upon its growth strategies of the firm. The success of firms comes from the selection of strategic options related to the products and services which market is offering by the organizations.

The different strategic selection to implement in the organization that can be recognized the type of the market in which the organization operates. The diversifications in the business environment play a vital role in the strategic planning option that one organization persuades over its life platform. Ansoff matrix also encompasses the risk which is associated with all these four strategic discretion. Market penetration in general well-though as a low risk where as diversification, conceived as a high risk in growth of strategies because it involves the growth in new products and new markets simultaneous.

Diversification is said to be the most popular strategy act for organizations in today¿½s competitive business environment, and if these adversities will consistently move strategically it will make improvement in profitability which is experienced through out many examples.

Diversification remains a popular strategic option for firms in today's competitive business arena, and if the diversification strategy is consistent and well though-out, like the case of IBM, significant improvements in profitability can be experienced.

Hewlett Packard provides new opportunities for technologies in order to have proper effect on business markets, policies of government and on a lay man. HP gives the collection such as personal computers, different software, services and Infrastructure of IT in order to provide solution of problems to the customers

This report gives a far-sighted statement which has risks, doubts, uncertainties and assumptions.

Market Penetration

HP penetrated market means it increases its market share by acquiring Palm Inc. HP get a good benefit by acquiring it, the combination of HP and Palm Inc. gave HP a big family of smart phone more over a plat form to expand and a trusty worthy profile among smart phone pioneers. Hewlett Packard also increases its revenue, and promote the product, and efficiently reposition the brand and much more.

Market Development

Palm Inc. helped a lot HP in developing their market for smart phone as its Web OS won award, more over Pre and Pixi smart phone product lines that helped HP to develop its market.

Product Development

This is a new product to be marketed to our existing customers. Here we develop and innovate new product offerings to replace existing ones. Such products are then marketed to our existing customers. This often happens with the auto markets where existing models are updated or replaced and then marketed to existing customers.

HP palm¿½s web OS was something really unique which they launch of it they gain pride and more over a good business for HP.


HP no doubt creates a meaningful effect on societies and people it¿½s one of the popular brands among consumer and people interested in technology. Acquisition of palm Inc. brought diversification in Hewlett Packard¿½s current business as it brought smart phones into its business and more over the gain benefit out of it.

Question# 5

The California-based speculation firm includes the partners U2¿½s Bono & Lake.S co-founder Roger McNamee, invested in the beginning in Palm, bought $325 million exchangeable preferred shares. The company also invested $135 million all the way through warrants, preferred, and common shares.

Elevation invested $25 million and gained 5.4 percent on Palm, and they lost in common shares by 65 percent.

Apple¿½s Mac has impressive and profitable business having 10% market share, albeit in the computer space, and 16.2 percent share of the global smart phone space of iPhone. The Palm has approximately 1.5 percent stake in Smart phone Empire, where as the Motorola has 3.9 percent that means Palm didn¿½t have to go further to start taking seriously. Indeed Palm revert chances in the mobile market but Hewlett-Packard has beautifully invested and took over, definitely they went deep down and quickly enough to turn up the things.

The elite business class of western confidence has been shocked by Japanese, but elaborated the comparison of two different management styles which determines the successful businesses influenced westerners that they could overcome the adversities.

C.K Prahald & G. Hamel affirmed that the strategy needs to be more efficient and vigorous, and we have to focus less on ¿½comfy chairs¿½. The strategic architecture and intent was introduced by C.K Prahald & G. Hamel. The came in the market with the product differentiation and gave the idea of core competency. They were trying to show that how important it is for the company that we can come up with the idea of knowing one or two things that our company does better than the rivals.

New stuff like Android and RIM came to the market with new stuff and took over the palm OS. Hewlett Packard has good name in technology, where as Palm started declining after Apple¿½s iphone. Software of Palm OS weren¿½t easily available in the market on the other hand Apple and other smart phones soft wares are available in the market.

The information gathered and dynamic problem solving with the help of Active strategic management. In the beginning of Hewlett Packard, Dave and Bill construct an active management style so that they called management by walking around (MBWA). The senior Hewlett Packard was hardly at their desk. They mostly spent their time by visiting suppliers, employees, and customers.

Hewlett Packard on the very large scale implemented the CoE model so that organization transform for their customers, e.g.; (SOA) service oriented architecture. The development of small ¿½services¿½ can be breakthrough by SOA software design technique (so that business processes with the help of group of software components). In order to perform difficult task efficiently the services hooked up together.

The services are then hooked together with other services to perform larger tasks. The services are loosely coupled, have an independent interface to the core system, and are reusable. Web services, one of the important strategies to increase business and reduce transaction costs, are an exam¿½ple of SOA. SOA represents a transformation in how businesses and IT develop business solutions.

This software involves many benefits that every company seeks are:

They established organization benchmark, improved procedures, and the style to govern.

The method of development, standardize infrastructure, and operational management processes.

Increase the business nimbleness, so that the company can adapt more quickly with the environmental changes.

Decrease the risk, and overcome the complexity, reduces idleness, and support intricacy.

The information technology and business are aligned, they enables to re-use and quicker time-to-market, which deal efficiently with customers.